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F I S C A L I M P A C T R E P O R T

SPONSOR Sandoval

DATE TYPED 02/07/05 HB 486

SHORT TITLE Homeless Veterans Assistance Programs

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$548.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 344 except that bill does not include an emergency clause

Relates to HB 191, and SB 88

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

New Mexico Department of Labor (NMDOL)

Veterans’ Services Department (VSD)

SUMMARY

Synopsis of Bill

House Bill 486 appropriates $548 thousand from the general fund to VSD for the purpose of

providing outreach and direct services to homeless veterans including housing, employment

training, support services and recreational activities.

Significant Issues

VSD currently has a contract with the New Mexico Veterans Integration Center in Albuquerque

for 30 beds through a federal grant solely for homeless veterans. The Center has a capacity for

80 beds but lacks funding to expand services.

House Bill 486 -- Page 2

NMDOL states this appropriation would “significantly enhance our mission to veterans.” The

agency has a Veterans Employment Program which provides priority service for “day labor,” job

search, and outreach to the Homeless Veteran Re-integration Program.

PERFORMANCE IMPLICATIONS

This appropriation directly relates to the performance measure on the number of homeless veter-

ans provided shelter for a period of two weeks or more.

FISCAL IMPLICATIONS

The appropriation of $548 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall

revert to the general fund.

The LFC FY06 appropriation recommendation is balanced between revenues and expenditures

and any increase in recurring funding must be offset by reductions in other areas of the recom-

mendation. The Legislature must consider all priorities and funding requirements to find reve-

nue to support this legislation.

ADMINISTRATIVE IMPLICATIONS

VSD will have to determine the best method of providing the required services. HSD states

there will need to coordination among HSD, VSD, Department of Health, Mortgage Finance Au-

thority, and other state and local government agencies. Rather than establishing employment

services, VSD should collaborate with NMDOL and use existing services.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

Expenditures for homeless veterans will remain at the current level if fully funded in the General

Appropriation Act.

POSSIBLE QUESTIONS

1.

What services are envisioned and what is the proposed method of delivery.

2.

Will envisioned services be concentrated in one area or dispersed throughout the state.

3.

If the services are concentrated, what means will be used for outreach to rural parts of the

state.

GAC/njw